IMPALA Independent Labels Workshop on BUSH

Daniel Antal, CFA

12/11/2019

Overview

⯈ Market Demand - market development situation

⯈ Regulatory Challenges - lobbying and advocacy

⯈ Business Development Challenges - algorithmic Sales

⯈ Let’s Work Together: national research & HR consortia, mapping the Balkans, building the European Music Observatory.

More info and feedback to the ⯈ author.

Use the ⯅ ⯆ to go deeper in a topic and ⯇ ⯈ keys to navigate between topics.

Market Demand Drivers

  • The willingness and ability of the region’s households to ⯆ pay for music or film is still critically low.

  • Music is ⯆ not competitive with cinema, theatre, television, and other forms of recreation and culture in the region. Better sales, better collective management, better pricing is needed to close the royalty gap.

  • Independent labels and publishers must keep an eye on the problems of the live music sector, because currently this keeps their artists in the music profession.

  • ⯆ Collective management will not make independent labels rich, but a functional, respected, transparent collective management is a basic need in any emerging market from Eastern Europe to Latin America.

  • You can skip this topic and go to ⯈ Regulatory Challenges.

Recorded Market Drivers

The willingness and ability of the region’s households to pay for music or film is still critically low. This is a long-term market building challenge. But in the short term, it is absolutely necessary to close the value gap, strengthen private copying remuneration and all forms of collective licensing.

Live Music Market

The fundamentals of the live music market are stronger than the foundations of the recorded music business. Independent labels and publishers must keep an eye on the problems of the sector, because currently this keeps their artists in the music profession.

Market Strength

Music is not competitive with cinema, theatre, television, and other forms of recreation and culture in the region. Better sales, better collective management, better pricing is needed to close the royalty gap.

Dependence on Collective Management

Collective management will not make independent labels rich, but a functional, respected, transparent collective management is a basic need in any emerging market from Eastern Europe to Latin America.

Regulatory Challenges

  • The transposition of the ⯆ DSM Directive is a once in a decade opportunity to close the royalty gap with rest of Europe. A very convincing, fact-based and emotional advocacy campaign is needed in all EU capitals.

  • The ⯆ current economic climate is increasingly favorable for creative industries, because manufacturing provides less and less jobs and tax base in the region.

  • It is necessary to prepare with economic impact assessments and ally with other creative industries, including film, television and radio.

  • While many stakeholders are desperately lobbying for grant money and other new sources, ⯆ unfavorable taxation is a far bigger problem in the region.

  • You can skip this topic and go to ⯈ Business Development Challenges.

Transposition of the DSM Directive

The transposition of the DSM Directive is a once in a decade opportunity to close the royalty gap with rest of Europe. A very convincing, fact-based and emotional advocacy campaign is needed in all EU capitals.

Example of Unlicensed Music Market Share (randomized based on real CEE results)

Example of Unlicensed Music Market Share (randomized based on real CEE results)

VAT Regulation Overhaul

It is necessary to prepare with economic impact assessments and ally with other creative industries, including film, television and radio.

Value Added in Exports

The current economic climate is increasingly favorable for creative industries, because manufacturing provides less and less jobs and tax base in the region.

Business Development Challenge: Algorithmic Sales

  • The recording industry is one of the most automatized industries in the world. Most of digital sales, and increasingly radio sales are made by robots.

  • Without adequate R&D, data literacy and collective action, there is a ⯆ threat of very serious market loss.

  • The increasing competition on the domestic market can be compensated with ⯆ contesting new markets.

  • The high level of competition and the high number of markets makes ⯆ market intelligence more important than ever. With the region’s limited promotion budgets, contesting 200 markets is not viable.

  • You can skip this topic and go to ⯈ start collaborating with us.

Threat Of Market Loss

Contestable Markets

Market Intelligence

Join us

  • Microenterprises must collaborate in strategic HR (skills assessment, lifelong learning, informal and formal learning) and R&D (algorithm training, royalty pricing, market research).

  • Even the region’s collective management organizations are small enterprises with limited HR and R&D capacity.

  • We are setting up national R&D Consortia to optimize the use of funds, data assets, granting opportunities, exploitation of results and new innovations. Join our Czech or Slovak ⯆ consortia, or start a new one.

  • Support our work and grant application in mapping the ⯆ Balkans.

  • We need your support with lobbying, recommendations to make CEEMID the prototype of the ⯆ European Music Observatory.

  • Let’s ⯈ get in touch.

National Research Consortia

  • Czechia: Czech Music Development Program, mapping the industry, music education, joint HR and joint R&D.

  • Slovakia: DSM Directive assessment (value gap), extending the private copying one-stop-shop, building national export support, better radio programming and national quota management.

Balkans Market Research Project

European Music Observatory

CEEMID has been doing what Eurostat is doing, often years earlier: revisiting newly available open data sources, and creating new regional and national data products.

⎘ Zoom into the presentation online ⎘ read more: Creating better national cultural statistics with Eurobarometer datasets and ESSNet-Culture technical recommendations

The Author

Thanks to Experts and Innovators in Digital Music

Consolidated Independent supported the making of this report. CI is the market leader in managed services for the digital music industry, connecting the best independent music with the opportunities of the global market.

Special thanks to the data science team: Theo Gardner, Andy McFarland & Jerome Wynne for data preparation and advice.

Feedback & Questions

Contact: danielantal.eu - linkedin - github - dataverse

Topics: royalty valuation - private copying - grant design - policy advocacy - ceemid observatory